Version 28 Oct 2022
The Minister for Finance announced in Budget 2022 that the GST rate increase will be staggered over two steps:
(i) from 7% to 8% with effect from 1 Jan 2023; and
(ii) from 8% to 9% with effect from 1 Jan 2024.
To prepare GST-registered businesses for the first rate change when the GST rate is increased from 7% to 8% with effect from 1 Jan 2023, we have published the e-Tax Guide, 2023 GST Rate Change:
A Guide for GST-registered Businesses1. This set of Frequently Asked Questions supplements the e-Tax Guide and should be read in conjunction with the e-Tax Guide.
1 Note: Same transitional rules will apply to transactions spanning the second rate change, when the GST rate
is increased from 8% to 9% with effect from 1 Jan 2024. IRAS will publish a separate e-Tax Guide and a
corresponding set of Frequently Asked Questions to prepare businesses for the second rate change by Apr 2023.
Table of Contents
1. Applicable GST rate to apply under common scenarios ……………………………………..4
1.1 Trade-in after rate change ………………………………………………………………………….4
1.2 Fees paid via credit card where instalment payments to the bank span rate
change date …………………………………………………………………………………………….4
1.3 Replacement of goods under warranty after rate change date………………………….4
1.4 Recovery of payment after rate change date for invoice received from supplier
before rate change date …………………………………………………………………………….5
1.5 Part payment received before rate change for supply billed in phases ………………5
1.6 Purchase of non-residential property where option is exercised before rate change
date but date of completion took place after rate change date………………………….5
1.7 Commission fees charged by real estate agent for property purchase completed
after rate change date ……………………………………………………………………………….6
1.8 Wedding banquet booked before rate change but only held after rate change ……6
1.9 Goods imported after rate change date ………………………………………………………..6
1.10 Construction services completed before rate change date but work done certified
after rate change date ……………………………………………………………………………….6
1.11 Construction services completed before rate change date but retention sum
payable after rate change date……………………………………………………………………7
1.12 Supply of goods under hire purchase arrangement ………………………………………..7
1.13 Gift purchased before rate change date but given away after rate change date ….8
1.14 Security deposit collected before rate change date but applied/ offset as payments
for lease rental after rate change date………………………………………………………….8
1.15 Import permit taken up at 7% GST before 1 Jan 2023 but goods cleared and
imported into Singapore on/ after 1 Jan 2023 ………………………………………………..9
1.16 Hotel stay straddling rate change date …………………………………………………………9
1.17 Goods sold on consignment terms …………………………………………………………….10
1.18 Construction services completed before rate change date but retention sum only
released during defect liability period………………………………………………………….10
2. Invoicing, credit notes, price display and documentary requirements ……………….10
2.1 Can I reflect the new and old GST rates in the same tax invoice for advance billing
in relation to supplies spanning rate change?………………………………………………10
2.2 Can I issue tax invoice now at GST of 8% for goods delivered after rate change
date?…………………………………………………………………………………………………….11
2.3 Credit notes on goods returned 2 to 3 years after rate change ……………………….11
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Version 28 Oct 2022
2.4 How do I apportion and bill the rental for a rental period that spans rate change?
…………………………………………………………………………………………………………….11
2.5 How do I apportion the value of service if I am in the business of writing software
programs?……………………………………………………………………………………………..12
2.6 What if I still have collaterals showing the old GST rate?……………………………….12
2.7 What should I do if I am absorbing the GST? ………………………………………………12
2.8 What kind of documentary evidence should I keep in order to support that the
services are completed before 1 Jan 2023? ………………………………………………..13
2.9 Adjustment via credit note where election is made under transitional rules……….13
2.10 Can I reflect the new and old GST rates in the same tax invoice for billing made
on/ after rate change? ……………………………………………………………………………..13
2.11 I elect to charge GST at the old GST rate. Can I issue tax invoice reflecting the old
GST rate after 15 Jan 2023? …………………………………………………………………….13
2.12 Can I indicate 8% GST on my purchase order/ proforma invoice issued before rate
change date? …………………………………………………………………………………………14
2.13 Volume rebates for supplies made before rate change………………………………….14
2.14 What kind of documentary evidence should I keep for election to account for GST
at the old GST rate for reverse charge supplies?………………………………………….14
3. Applicability of concessions …………………………………………………………………………..15
3.1 Supply taking place after rate change but GIRO deduction is in month of rate
change ………………………………………………………………………………………………….15
3.2 Cheques dated before rate change but presented within concessionary timeframe
(i.e. by 4 Jan 2023)?………………………………………………………………………………..15
4. Others……………………………………………………………………………………………………………15
4.1 Will rate change affect bad debt relief claims?……………………………………………..15
4.2 Is the election to charge GST at old GST rate mandatory?………………………15
4.3 Can I charge 8% GST on all invoices issued on or after 1 Jan 2023 for
administrative ease, regardless of the payment received date?………………………16
4.4 Filing of GST returns for transactions subject to different GST rates ……………….16
4.5 Accounting for GST adjustments ……………………………………………………………….17
5. Updates and Amendments ……………………………………………………………………………..1
Source: gov.sg
